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THE ELECTRICITY ACT, 2015(Act/g of 2015)ARRANGEMENT OF SECTIONSPARTI-Preliminary1. Short title and commencement.2. Interpretation.3. Objects of Act.II-Administration of ActPART4.Roles and responsibilities.5. Directions of the Office.6.Standards of Single Buyer.III-System Planning, etc.PART7.Minister to be responsible for planning.PART8. Restrictions on9.IV-Electricity Licencesc rtainelectricity services without electricity licence.Basis for grant of electricity licences.10. Characteristics of electricity licences.11. Register to be kept.12. Restriction on transfer of electricity licence.13. Revocation or suspension of electricity licence.14. Notification to the Minister by the Office.15. Failure to comply with directions of the Office.PARTV-Generation16. Electricity frequency.17. Duties of generation licensees other than self-generators.18. Self-generators.19. Independent power producers.20.Procurement of new generating capacity.21. Renewable energy.
iiThe Electricity Act, 2015[No.PARTVI-Transmission, Distribution and Supply Activities22.Duties of transmission, distribution and supply licensees.23.ApprovaJ of local authority for placement and removal of electric line.24.Order of Resident Magistrate to remove electricity line.25.Wayleave agreement.26.Wayleave agreement may be registered.27.Arbitration.28.Offence of cutting electricity lines.29.Right of entry to premises for inspection.30.Offence of obstructing agent of Single Buyer.31.Power of Minister to cause line and work to be removed.32.Right of easement of Single Buyer.33. Compensation for easement.34. Notice to owner of land.35.Joint use poles.36.Fair compensation for use of poles.37. Compensation.38.Lines, meters, etc., not subject to distress.39. Entry onto land by agent ofSingie- Buyer.40.Payment for damage to land.41.Where compensation not necessary.42. Necessary felling of trees, etc.43.Maintenance plan.PARTVII-The System Operator44. Obligation to comply with System Operator's directions.45.Duties of System Operator re despatching activities.PART46.VIII-Duty of Single Buyer to Maintgin Separate AccountsSingle Buyer to maintain separate accounts.PART47.Codes.IX-Codes
The Electricity Act, 2015PARTX-The Government Electfical Regulator48. Government Electrical Regulator.49. Licensed Electrical Inspector.PART(\XI-Electricity Funds50. Systems Benefit Fund.PARTXII-Electricity Appeal Tribunal51. Electricity Appeal Tribunal.PARTXIII-Rural Electrification52. Rural electrification.PARTXIV-Penalties53. General penalty provision.54. Fixed penalty.PARTXV-Miscellaneous55. Regulations.56. Minister may by order amend monetary penalty.57. Amendment of Larceny Act.58. Unlawful abstraction or use of electricity.59. Repeal of enactments.60. Review of Act.161.Saving of regulations made under repealed Acts.62.Savings and transitional.SCHEDULES.[No.]iii
JAMAICANO./g' - 2015I assent,Governor-General.AN ACT to Repeal the Electric Lighting Act, the Electricity(Frequency Conversion) Act and Electricity DevelopmentAct; to consolidate and modernise the laws relating tothe generation, transmission, distribution, supply,despatch and use of electricity; and for connected matters.The date notined by the Minister[bringing the Act into operation ]BE IT ENACTED by The Queen's Most Excellent Majesty, byand with the advice and consent of the Senate and House ofRepresentatives of Jamaica, and by the authority of the same, asfollows:PART I-Preliminary1. This Act may be cited as the Electricity Act, 2015, and shallcome into operationon a day to be appointed by the Minister by.notice published in the Gazette (hereinafter called the "appointedday").Short title andCOl1lnlCnCC-men!.
2Interpretation.[No.]The Electricity Act, 20152. In this Act, unless the context otherwise requires"avoided cost" means the cost saved by buying retail energyor capacity or both instead of building a new plant aftertaking into account the capital cost and the operatingcost of the plant;"Codes" mean the generation code, the transmission code,the distribution code, the supply code and the despatchcode;"cogeneration" means the production of both useful heatand electrical power from a single generating source;"despatch activities" means the activities involved in thecentral management and direction of generating plantsand other sources of supply to the system in order toachieve the optimal safety, reliability and economicsupply of electricity;"despatch code" means the rules made by the Office, withthe approval of the Minister, to govern despatchactivities;"despatch licensee" means a person holding an electricitylicence to conduct despatch activities;"distribute", in relation to electricity means electricity bymeans of distribution lines and the expression"distribution" shall be construed accordingly;"distribution code" means the rules made by the Office, withthe approval of the Minister, to govern the distributionsystem and activities relating thereto;"distribution licensee" means a person holding an electricitylicence to establish, maintain and operate a distributionsystem;"distribution lines" means any electric power line operatingbelow 69,000 volts;"distribution system" means that part of the system thatoperates below 69,000 volts;. .
The Electricity Act, 2015[No.]"electricity licence" means a licence granted under this Act todo one or more of the following with respect to )distribution;(d)despatch;(e)supply,and includes any existing licence;"energy efficiency" or "energy conservation" means the useofless energy to accomplish the same task or satisfy thesame need, by the application of changing technology orpatterns of usage;"existing licence" means a licensee referred to in section 62;"Fund" means an electricity fund including the System BenefitFund established under section 50;"generate", in relation to electricity, means the production ofelectricity by means of a generation set;"generation code" means the rules made by the Office, withthe approval of the Minister, that govern generationactivities in the electricity sector;"generation licensee" means a person having an electricitylicence issued by the Minister to conduct the activity ofgenerating electricity in Jamaica for supply to adistribution line or a transmission line;"Generation PrQcurement Entity" means the entity designatedby Cabinet in section 20 to procure new generatingcapacity for the system;"generation set" means any plant or apparatus used for theproduction of electricity;3
4[No.The Electricity Act, 2015"Government Electrical Regulator" means the entityresponsible for regulating the work of electricians andelectrical inspectors;"grid parity" means when an alternative energy source cangenerate power at a levelized cost of electricity that isless than or equal to the price of purchasing power frol11the electricity grid;"independent power producer" means a licensee that owns oroperates facilities for the generation of electricity foruse primarily by the public, and that is not the same legalentity as the Single Buyer;."integrated resource planning" means the planning(a) by the use of any standard, regulation, practice,or policy to undertake a systematic comparisonbetween demand side management measuresand the supply of electricity by an electricitygenerator to minimise the cost of adequate andreliable services to electricity consumers;(b) taking into account necessary features forsystem op ration such as diversity, reliability,despatchability, and other factors of risk; and(c) treating demand and supply to electricityconsumers on a consistent and integrated basis;"interconnection" means the connection of a transmission ordistribution line between the generation sets of ageneration licensee or a self generator and thetransmission system or the distribution systemrespectively;"licensee" means the holder of an electricity licence;"local authority" means(a) in relation to the parishes of Kingston and St.Andrew, the Council of the Kingston and St. .
The Electricity Act, 2015[No.JAndrew Corporation as constituted under theKingston and St. Andrew Corporation Act;(b) in relation to any other parish, the ParishCouncil of that Parish as constituted under theParish Councils Act; or(c) in relation to a municipality, a MunicipalCouncil established under the MunicipalitiesAct;together with any other government agencies from whomany approval or other form of authorisation is requiredby law in respect of the matter concerned;"net billing" means a mechanism for self generators to sell orbe otherwise credited with the value for the excess powergenerated under standard offer contracts with the SingleBuyer that have been approved by the Office;"Office" means the Office of Utilities Regulation establishedunder the Office of Utilities Regulation Act;"power purchase agreement" means the contract that governsthe commercial relationship between an independentpower producer and the Single Buyer which is approvedby the Office and, which contract requires the Single Buyerto buy electricity from the independent power producerand the independent power producer to sell electricity tothe Single Buyer, in accordance with the terms andconditions thereof;"renewable energy source" means energy sources that are notdepleted when exploited and includes sources prescribedby the Minister by order published in the Gazette;"self generator" means a person who generates electricity forthat person's own exclusive use, and shall include aperson who has entered into a net billing or wheelingarrangement;5
6[No,]The Electricity Act, 2015"Single Buyer" means the licensee whose licence obligates itto purchase electricity generated by independent powerproducers and persons having net billing arrangements;"Standard Offer Contract" means a contract developed andapproved by the Office for use in promoting renewableenergy with capacity limits established by the Ministerunder a net billing arrangement;"supply", with respect to electricity, means the activitiesinvolved in the sale of electricity to consumers;"supply code" means the rules made by the Office, with theapproval of the Minister, to govern the supply ofelectricity;"supply licensee" means a person holding an electricity licenceto supply electricity;"system", with respect to electricity, means the physicallyconnected generation, transmission and distributionfacilities operated under the central management of thesystem operator;"System Operator" means the licensee holding the despatchlicence that is a ring-fenced department within the SingleBuyer;"transmission", in relation to electricity, means the conveyanceof electricity by means of transmission lines and theexpression "transmission" shall be construed accordingly;"transmission code" means the rules made by the Office, withthe approval of the Minister, to govern the transmissionsystem and activities relating thereto;"transmission licensee" means a person having an electricitylicence to establish, maintain and operate a transmissionsystem;"transmission lines" means electric power lines operating at69,000 volts or higher; 'I""
The Electricity Act, 20 J5[No.)7"transmission system" means the system that operates at 69,000volts or higher;"Tribunal" means the Electricity Appeal Tribunal establishedunder section 51;"use of system charge" means the regulated amount set by theOffice for the access and use of the transmission system,distribution system or both;"wheeling" means an arrangement whereby a self generatorprovides electricity to the system on terms pursuant towhich an equivalent amount of electricity may be usedfrom the system at one or more locations, in accordancewith this Act and any regulations made hereunder.3.The obj ects of this Act are to(a) provide for a modern system of regulation of thegeneration, transmission, distribution, supply, despatchand use of electricity;(b) promote transparency in the identification and allocationof costs and revenues within and between participants inthe electricity sector;(c) promote clarity in relation to the respective roles andresponsibilities ofthe stakeholders in the electricity sector;(d) facilitate the achievement of the efficient, effective,sustainable and orderly development and operation ofelectricity supply infrastructure, supported by adequatelevels of investment;(e) promote energy efficiency and the use of renewable andother energy sources;(f)prescribe the required standards in the electricity sector;(g) ensure the protection and safety of consumers ofelectricity and the public;(h) ensure that the regulation of the electricity sector istransparent and predictable.Objects of Act.
8[No.IThe Electricity Act, 2015PART II-AdministrationRoles andresponsibilities.ofAct4. In the regulation of the electricity sector, the foHowing personsshall have the foHowing roles-(a) the Minister shall plan the system and issue licences forthe various activities;(b) the Generation Procurement Entity shall procure newgenerating capacity;(c) the Government Electrical Regulator shall regulateelectricians and electrical inspectors; and(d) the Office shall regulate the electricity sector generally.Directions oftheOtlice.5. The Office may, where it considers necessary, give directionsto any licensee with a view to ensuring that(a) the needs of the consumers ofthe services provided bythe Single Buyer are met;(b) the Single Buyer operates efficiently and in a mannerdesigned to-(i)protect the health and wellbeing of users of theservice and such elements of the public aswould normally be expected to be affected byits operation;(ii) protect and preserve the environment; and(iii) afford to its consumers economical and reliableserVIce.Standards ofSingle Buyer.6.-{1) Subject to the conditions of its licence, the Single Buyershall provide an adequate, safe and efficient service based onmodern standards, to all parts of the Island at reasonable rates soas to meet the demands for electricity and to contribute to economicdevelopment.(2) The Single Buyer shall not show any undue preferenceto or unduly discriminate against any person (whether or not it isany other business of the Single Buyer or an affiliate ofthe Single
The Electricity Act, 2015[No.]9Buyer) or class of persons as respects the sale or purchase of anygoods (including electricity), service (including connections anduse of System) or opportunity or access to the same.(3) The Single Buyer shall, save where it enters into specialcontracts with customers for the supply of electricity pursuant tosection 14 of the Office of the Utilities Regulation Act, charge itscustomers for such a supply according to published tariffs, approvedby the Office, as updated from time to time.(4) The published tariffs shall be cost-reflective, unlessotherwise directed by the Office and each tariff category will applyuniformly across the Island and there will be no discrimination tocustomers on the tariff charged based on location.PART III-SystemPlanning, etc.7.-(1) The Minister shall be responsible for planning thedevelopment of the system, which planning shall include-Minister to beresponsible forplanning.( a) integrated resource planning;(b) the collection of data from electricity sector participants;(c) consultations with the Office, the Single Buyer and otherelectricity sector participants; and(d)the conduct of any relevant forecast.(2) The planning process for transmission and distributionshall specifically consider the location of renewable and othergeneration sources, taking into account the potential forelectrification of rural areas.(3) A licensee shall comply with a request made by theMinister for infonnation for the purposes of executing his planningresponsibility under this section and failure to comply with a requestunder this subsection, without reasonable cause, shall be an offence.PART IV-Electricity Licences8.-(1) Subject to subsection (2), a person shall not-Restrictionson certain(a) engage in the generation, transmission, distribution, r tydespatch and supply of electricity·, orwithoutelectriCitylicence.
10[No.The Electricity Act, 20 I 5(b) erect, maintain or have any electric line or other worksover, along, across or under any street or public road forthe purpose of the supply of electricity,unless authorized to do so by an electricity licence issued by theMinister.(2) Subsection (1) shall not apply to a person who generateselectricity as a self generator for that person's exclusive use, unlessthat person enters into a net billing arrangement, a wheelingarrangement or connects to a transmission line or distribution linefor some other purpose.(3) An application for an electricity licence may be made tothe Minister in the prescribed form and manner.( 4) Any person who contravenes subsection (1) commitsan offence.Basis for grantof electricitylicences.9.-(1) Subject to subsection (2), an electricity licence may begranted by the Minister(a) pursuant to procurement under a competitive biddingprocess initiated by the Generation Procurement Entity;(b) pursuant to an application in the prescribed form for thelicence, in respect of net billing, wheeling arrangementsor other arrangements; or(c) where the Cabinet has determined that any of thefollowing circumstances exists, namely-(i)an emergency situation exists such as to makea competitive bidding process impractical;(ii) the grant of the licence is necessary in order toaccommodate an offer from a foreigngovernment to the Jamaican Government thatwill benefit the electricity sector;(iii) due to exceptional circumstances or theprevailing economic and financial conditionsin Jamaica, it is in the public interest to grantthe licence.
The Electricity Act, 2015[No.11](2) In respect of an electricity licence granted or applicationmade pursuant to subsection (1), sections 4(1)(b) and 4B of theOffice a/the Utilities Regulation Act shall not apply.(3) In considering the grant of a licence under subsection(1), the Minister may-(a) request of the proposed licensee such information andother particulars, in writing or otherwise, as he considersappropriate;(b) request the Office to provide technical or other adviceor support as he may require;(c) require the proposed licensee to satisfy such otherrequirements as may be prescribed.(4) A proposed licensee shall pay a non-refundableprocessing fee as may be prescribed in respect of a licence undersubsection (1).(5) Notwithstanding that a proposed licensee has met therequirements for the grant of an electricity licence, the Ministermay refuse to grant the licence where he is satisfied that the electricity that would be supplied pursuant to the licence would exceedthe system's needs or the grant of the licence would otherwise notbe in the public interest.10.-(1) An electricity licence granted under section 9 (1) (a)or (c)-Characteristics felectricitylicences.(a) shall be a non-exclusive licence for the generation ofelectricity for the entire Jamaica or any part thereof; or(b) may be an exclusive or non-exclusive licence (as the casemay be) for any or all of the following services, namelythe transmission, distribution, supply or despatch ofelectricity for the entire Jamaica or any part thereof.(2) An electricity licence granted under section 9 (1) (b)shall be a non-exclusive licence.(3) An electricity licence shall be in writing and shallcontinue in force until it expires or is otherwise terminated in
12[No.The Electricity Act, 2015]accordance with its terms, or mless revoked or suspended inaccordance with this Part.(4) An electricity licence may include any restriction orcondition (whether or not relating to the activities authorised by theelectricity licence) which appears to the Minister to be necessaryor expedient, and he may request the Office to makerecommendations in this regard.(5) Without prejudice to the generality of subsection (4),an electricity licence may(a) include any condition requiring the licensee(i)to pay a prescribed fee on the grant of thelicence, in addition to the processing feereferred to in section 9(4);(ii) to observe, with such modification as may beapproved by the Office, such of the Codes asapply to the licensee's operations;(iii) to provide the Minister with such informationand supporting documentation as he may requirefor the purposes of section 9(3)(a) or any otherpurposes under this Act or any regulations madehereunder;(iv) to do or not to do such things as are specifiedin the electricity licence;(b) provide for anyone or more of the conditions specifiedin the electricity licence to cease to have effect at suchtimes and in such manner and circumstances as may bespecified in or determined by or under the condition.(6) The Minister shall in writing notify an applicant forthe grant of an electricity licence under section 9(1 )(b) of hisdecision to grant or refusal to grant the application and, in the caseof a decision to refuse the application, the reasons for his decision.(7) Where the Minister refuses to grant an electricity licenceunder subsection (6), the Minister shall afford the applicant anopportunity to show cause as to why the licence should be granted."
The Electricity Act, 2015[No.]13(8) It is the duty of a generation licensee to ensure that thegeneration licensee does not commit an act or omission that willadversely affect, directly or indirectly, the. security and stability ofthe system or the safety ofthe public.11. The Minister shall cause a register to be established andmaintained in which the particulars of each electricity licence shallbe entered.12.-(1) No electricity licence shall be transferable to any otherPerson without the approval in writing of the Minister, and beforemaking his decision whether or not to give his approval under thissubsection, the Minister may seek the advice ofthe Office.Register to bekept.Restriction ontrlansferty0fe ectncilicence.(2) Any purported transfer of an electricity licence incontravention of subsection (1) shall be void.13.-(1) Subject to the provisions ofthis Act, the Minister may Revocation orrevoke an electricity licence, or suspend an electricity licence for ! : ;i n ofsuch period as he thinks fit, ifhe is satisfied thatlicence.(a) the licensee has committed an act of bankruptcy withinthe meaning of section 57 of the Insolvency Act;(b) the licensee has breached any of the terms or conditionsof the electricity licence and the period provided, ifany,for remedying the breach has expired and the breach hasnot been remedied to the Minister's satisfaction;(c) a licensee has not complied with any direction orrequirement issued by the Office under section 5; or(d) the public interest of Jamaica so requires.(2) Subsection (1) shall not apply to an electricity licencewhich contains provisions setting out the powers to revoke or tosuspend the electricity licence and the circumstances in which thosepowers may be exercised, whether or not those circumstances aresimilar to any of those specified in subsection (1), save to the extentthat the terms of the electricity licence expressly incorporate theprovisions of subsection (1).
14[No.]The Electricity Act, 2015(3) Subject to subsections (7) and (8), the Minister shallnot exercise his power to revoke or suspend an electricity licenceunder subsection (1) unless he has first afforded the licensee theopportunity to make representations, whether orally or in writing,as to why the power should not be exercised.(4) The Minister may, ifhe thinks fit, appoint one or morepersons to hear, receive and consider the representations referredto in subsection (3) and to submit to him for his determination,within such specified time as he may consider reasonable, a writtenreport of the findings and recommendations arising from theirconsideration of the matter examined.(5) The suspension or revocation Of an electricity licenceshall not relieve the licensee of any obligation incurred or assumedby the licensee prior to the suspension or revocation of the licence.(6) Where the licensee is a party to an agreement with theSingle Buyer for the sale or other supply of electricity to the SingleBuyer, a breach of that agreement by the licensee or the SingleBuyer shall constitute a breach of the electricity licence held by thelicense or the Single Buyer, as the case may be, for the purposesof subsection (1) (b); however, this subsection shall not apply to anexisting licence unless that existing licence so provides.(7) In affording the licensee the opportunity to makerepresentation, the Minister shall notify the licensee in writing ofthe proposed suspension(a) stating the reason therefor;(b) requiring the licensee, in the case of a breach, to remedythe breach within the time specified in the notice.(8) A licensee who is served with a notice under subsection(7) shall, after remedying the breach which gave rise to thesuspension, notify the Minister in writing that the breach has beenremedied.Notitication tothe Ministerby the Oftice.14. If the Office is satisfied that an electricity licensee iscontravening, is likely to contravene or has contravened anycondition of the licensee's electricity licence, any of the Codes,.
The Electricity Act, 2015[No.]15any provision of this Act or any regulations made hereunder, or anydirection issued by the Office to or applicable to the licensee, theOffice shall forthwith notify in writing to the Minister thereof andmay provide the Minister with such recommendations as it considersappropriate.15. A licensee who after investigation is determined to havefailed to comply with any direction given by the Office under thisAct commits an offence.Failuretocomply withllin;\:liuIIS ofthe Office.P ART V-Generation16. The apparatus that is utilized to generate electricity shallsupply that electricity at a nominal frequency of 50 Hertz.frequency.17.-(1) Subject to subsection (2), it is the duty ofa generationlicensee to develop and maintain a reliable, efficient, compatible, d. Ifl' .dsale an economlca system 0 e ectnclty generatIOn III accor ancewith the electricity licence held by the generation licensee and thegeneration code, this Act and any regulations made hereunder.ElectricityDuties ofgl·eneration hlcensees ot erthan selfgenerators.(2) Subsection (1) shall not apply to self-generators.(3) For the purposes of subsection (1) and section 18(1)(b), a system of electricity generation shall be considered compatibleifit complies with the provisions of this Part.18.-( 1) A self-generator shall(a) develop and maintain a system of electricity generationin accordance with the generation code;(b) if the self-generator holds an electricity licence, developand maintain a reliable, efficient, compatible and safesystem of electricity generation in accordance with itselectricity licence, this Act and any regulations madehereunder.(2) Subject to subsection (4), prior to entering into anyarrangement for the sale or other supply of excess electricity, a selfgenerator shall(a) enter into a Standard Offer Contract with the Single Buyerfor such sale or supply; and(b) be the holder of an electricity licence.Selfgenerators.
16[No.'IThe Electricity Act, 2015(3) Where the self generator has met the requirements undersubsection (2) and has paid the use of system charges, the selfgenerator shall not be denied access to the system, except incircumstances where the System Operator determines that denialof access is necessary due to technical conditions, in which eventthe System Operator shall provide the self generator with writtenreasons for the denial of access within forty-eight hours thereafter,and shall provide a copy of those reasons to the Minister and theOffice.(4) Notwithstanding subsection (2), the Minister may, inwriting, where he is satisfied that it is in the public interest to doso, authorize the sale or other supply of electricity by a self generatorto the Single Buyer, pursuant to an agreement approved by theMinister in circumstances where the requirements of subsection(2) are not met.(5) Prior to granting an authorization pursuant to subsection(4), the Minister may consult with the Office.(6) A self generator, who is the holder of a generationlicence and has paid the use of system charge may engage inwheeling for its or his own exclusive use and, in the event that amarket study conducted by the Office determines the need foradditional capacity, that self generator may engage in wheeling toan entity in which it or he owns more than fifty per cent interest.(7) The Office shall determine and prescribe by order thetariff payable to the Single Buyer within six months after theappointed day by a self-generator for wheeling and revIew the tariffperiodically thereafter at intervals of not greater than five years.(8) The Minister shall, having regard to the integratedresource plan, the size and efficiency of a cogeneration plant andthe public interest, prescribe the excess capacity that a cogenerationplant will be permitted to supply to the system.(9) The Single Buyer shall implement an electric powerwheeling service in accordance with such terms and conditions asare approved by the Office.
The Electricity Act, 2015[No.119.-(1) Subject to subsections (2) and (3), the Single Buyershall enter into a power purchase agreement with each independentpower producer.17Independentpo\\'erproducers.(2) No such agreement under subsection (1) shall beentered into unless the Office has in writing approved the termsand conditions thereof.(3) The Single Buyer shall not be obligated Lo connect anindependent power producer s generated electrl city output to thesystem unless both the Single Buyer and the hief - Iectri a IRegulator agree that the independent power produccr s connectionwill not compromise the safety and protection of the system.20.-(1) The Generation Procurement Entity shall be appointed Procurementby the Cabinet for the purpose of procuring new generating capacity tingand the Cabinet may revoke any such appointmen
activities in the electricity sector; "generation licensee" means a person having an electricity licence issued by the Minister to conduct the activity of generating electricity in Jamaica for supply to a distribution line or a transmission line; "Generation PrQcurement Entity" means the enti
